The businesses on global stage are more connected than ever. Especially when there’s an upward trend of finding vendors and talent internationally that can help in growing the business.  

Cross-border payments are at the heart of global business and how you manage them directly impacts your business expenses, cash flow, and expense tracking. But what is it? Why does it matter? And how can you manage them without losing money to hidden fees and slow transfers?  

Let’s break it down and see how Swipey can help you do it better. 

What Are Cross-Border Payments? 

Cross-border payments are transactions where the payer and the payee are in different countries. These can be large business transactions (like buying stock) or individual transfers (to pay freelancers!).  

They’re a standard part of doing business internationally and can involve a range of methods—wire transfers, card payments, or modern digital payment platforms. For growing businesses, managing these transactions well means streamlining business expenses with automation and smarter expense tracking. 

Common local examples include: 

• Importing goods from suppliers in China, Australia, or Europe 
• Paying for digital tools and services from overseas vendors 
• Settling cross-border invoices for marketing, software, or licensing fees 

While traditional financial institutions handle these payments through global networks like SWIFT, modern digital solutions now offer faster, clearer, and more cost-effective ways to move money internationally. 

Here’s an Example for Better Visualisation 

Aida, the owner of a boutique cafe in Kuala Lumpur, sources premium coffee beans from a trusted roaster in Melbourne, Australia. This month, she needs to pay AUD 7,500 for a new shipment of beans. With various options to pay internationally, Aida uses a modern finance operating platform to pay her supplier that transfers quickly and cost-effectively.  

Why Are Cross-Border Payments Important? 

Your next big expansion plan probably doesn’t have a Malaysian postcode. Cross-border payments give you the opportunity to drive that growth and see that plan through. For many Malaysian SMEs, cross-border payments unlock new opportunities in two main ways: 

• Global supply chains: Source products or materials at competitive prices.  

• Access to talent: Pay freelancers, consultants, or partners abroad.   

Earlier this year, the World Economic Forum stated that cross-border payments are an engine for economic growth especially for SMEs looking to grow beyond local borders.

How Do Cross-Border Payments Work? 

Let’s break down the key stages of the cross-border process: 

1. Initiation 

The sender, usually a business owner or someone in the finance team, instructs their bank, FinTech service, or payment provider to send money to an overseas recipient. The funds are deducted in the local currency. Exchange rates and hidden mark-ups often come into play here. 

2. Intermediaries  

The money travels through one or more intermediary banks or payment networks (like SWIFT). Each intermediary may charge a fee, adding extra cost and potential delays. 

3. Confirmation & Final Delivery  

The recipient’s bank receives the funds, clears them, and deposits the converted amount into the recipient’s account, sometimes minus more local bank fees. 

Without clear visibility, businesses can lose money to unfavourable exchange rates, surprise deductions, and slow processing times. That’s why many are turning to modern platforms (like Swipey!) that offer faster transfers, better rates, and greater transparency. 

Common Challenges of Paying Internationally 

There are several challenges that arise when trying to pay internationally, but these challenges stand out. Majority of the time, companies with business dealings overseas run into them. However, modern FinTech platforms have the potential to eliminate them and improve on processes in the long run.  

Hidden Fees 

Transferring funds internationally inherently comes with extra fees. Banks generally charge extra service fees or offer unfavourable exchange rates that eat into your margins as time goes by. These include charges from the sending bank, intermediary banks, and the receiving bank 

Slow Processing Times 

Traditional financial institutions can take 3-5 business days to process a payment. It can be frustrating for those who need funds instantly. Time zone differences, different banking hours, and local public holidays can make the process even slower. 

No Transparency  

When paying internationally, hidden fees appear during or after the transaction, so it’s not always clear who’s taking a cut—or when the money will arrive—until it’s all over. 

FX Volatility 

FX rates are constantly shifting, so you may think you’ve paid the correct amount, but by the time it reaches the recipient, it could be insufficient due to hidden fees and volatile currency rates. The unpredictability of this process makes it harder for businesses to plan payments.  

Swipey: Making Global Business Easier 

This is where Swipey comes in. With Swipey’s invoice and bill management feature, businesses can handle cross-border payments more easily, without the usual stress of hidden fees and paperwork. 

• Pay overseas invoices directly: Send payments to international suppliers or service providers in over 100 countries right from your Swipey dashboard.

• Access better FX rates: Get competitive exchange rates with clear, upfront costs, so you keep more of your profit instead of losing it to hidden mark-ups.

• Automate approvals: Streamline your multi-currency bill approvals and keep everyone in the loop, no matter where your suppliers are.

• Stay compliant: Maintain a clear digital trail for every invoice and cross-border payment, making month-end and audits less painful.

With Swipey, businesses can reduce unnecessary fees, pay international bills faster, and manage local and overseas expenses in one place—giving you back time and headspace to focus on growth. 

Swipey combines automated expense management software with real-time expense tracking solutions, so you always know where your money’s going, locally or globally.  

Ready to simplify cross-border payments and take control of your business expenses? Discover how Swipey’s automated expense management can help you pay smarter, track spending in real-time, and grow globally with confidence. Sign up or book a demo now!